Deripaska as Pirate of the Caribbean in the battle over Norilsk Nickel

Moscow. Deripaska wins one step in his conquest of the Norilsk Nickel Group. The Russian tycoon is being backed by a Caribbean judge who orders NorNickel to suspend its share buy-back offer.

The ongoing fight over Norilsk Nickel enters the next stage. Since Oleg Deripaska in 2008 with his Rusal Holding Group has become a shareholder in the company, he and billionaire Vladimir Potanin (Interros Holding) have been fighting over who is in control. Both parties are holing 25 pct of the group's shares, but Potanin is owner already for some years and has support by NorNickel-management.

No peace agreement

The attempt of achieving a peaceful settlement failed, when Deripaska rejected Potanin's offer (according to an unofficial source between 9 and 12 billion dollars) to buy him out, as insufficient. At the last AGM Potanin was able to get all of his candidates onto the board while Deripaska only managed to place three of his four candidates.

Deripaska's coup in the Caribbean

In March, Deripaska announced an Extraordinary General Meeting to re-elect the Board of Directors.

Just before the election he succeeded to land a coup. A St Christopher & Nevis court ordered Norlisk Nickel to suspend its already started share buy-back offer and halt any business with stock broker Trafigura. The court goes even further and prohibits the Norlisk Nickel Management to vote with their own stocks.

The share buy-back program is part of the power struggle. Management had offered the small shareholders to sell their shares to the group at a premium of 10 pct, overall NorNickel wants to spend 3.4 billion pounds. These shares would increase its number of directors.

The NorNickel daughter companies Corbierre and Raleigh, with Headquarters on the island of St Christopher and Nevis, have been instructed to oversee the implementation of the program. The court hearing took place in the absence of the defendant.

NorNickel: “Extortionist methods of the 90s”

Norlisk Nickel views RusAl's actions as a deliberate attempt to discredit the company, to undermine the share value as well as the management, while deploying extortionist methods of Russia in the 90s.

According to Russian lawyers NorNickel could appeal against the decision. It is however doubtful if the company would succeed in forcing a decision by March 2nd.

Should the balance of power remain the same and the management is not allowed to vote then Deripaska has a chance to change the composition of the board.